The Money System Explained



You are not allowed to visit this site: www.ourmoneysystem.wordpress.com. Money - History's Biggest Scam The money sytem explained in an easy fashion. How banks create money out of thin air, how this system of perpetual debt and fractional reserve banking works.

Comments

  1. the fictional reserve political faction system
  2. There is a concerted effort in universities / colleges and media to confuse and keep people in the dark about money creation and commercial bank credit. This video is no exception.

    Most people stand at 1st grade level of commercial bank monetary policy. Probably most people believe that banks loan from people's deposit. That banks are mere intermediaries. This is wrong and misinformation.

    The second idea about money creation is the idea of fractional reserve lending. this is also wrong which can be ascertain by the rapid money creation in a boom credit cycle.

    The third and correct method of commercial bank money creation is actually criminal. The bank has a prospective debtor sign a promissory note. The bank creates a transaction account for the debtor and deposits the promissory note in the account. The bank draws a check from the transaction account.

    The bank did not treat the promissory note as a commodity
    The bank did not take its own capital to acquire the promissory note.
    What the bank did is to exchange the promissory note for its own accepted proprietary endogenous money. This is in direct contradiction to article1, section 8, clause 5.
  3. Thank you for your explanation!
  4. You forgot to explain how are they creating the money. In your video, there's always 1000e, and ppl may get confused, since throughout the process, there is no new money.
    When someone deposits his money, it's true, bank lends fraction of his money to others, BUT, his account still says that he has 1000e in his account! So, that's where bank creates new money. It's a bank credit, that they put into his account, by just typing numbers into a computer. So. in the beginning, there was 1000e, now there is 1800e and so on and on...
  5. Conjuring fiat currency from the vacuum of space and then charging interest on this non-existent fiction seems very immoral. In this way bankers make debt slaves of the average person. When the dollar crashes people will execute bankers in the streets for their treachery! All the dead banksters will be no real loss to society, they are all parasites!!
  6. Helleo, I create my Own Bank with this company ho help me, it is from U.K. and he help me very much if you what info you can enter to see on the link: https://rightrise.com/?r=companyioan
  7. 1) The idea of fractional reserve is a bad explanation of how our monetary system works.

    2) ,Banks dont lend, they create money and they dont lend the reservrs
  8. what happens when someone cannot pay their loan back ? lol
  9. load of shit, just like the banks
  10. banks are a complete shit
  11. Dear Mike,


    nice video - but totally wrong when it comes to the truth..!

    If you just stick to what you SHOW in this video, you would realize how wrong the things you SAY are.

    I really wonder where you get those "5.000,- €" from.

    Make an addition of all the banknotes and parts of banknotes (for the reserves) you have spread over those three banks.

    What is the total amount, when you put them all together again?

    1.000,- €

    There is no "creation" of 4.000,- € out of the blue sky.

    The "money multiplicator" is a conspiracy theory and you yourself SHOW this in your video!


    With best regards,
    Georg
  12. You did a great job, but you missed it! ALL MONEY comes from the federal government via the Treasury (via bond purchases of investors) and loaned out via treasuries to everyone - banks, people, other governments, etc. SO, ALL MONEY in supply is loaned out on promise (the promise of American labor). SO, ALL MONEY in supply is really in existence via the guarantee of the future promise fulfillment created by American labor. The end.
  13. money maddness
  14. Let's say the banks go on strike then what?
  15. if you are truly interested in what banks do read the excerpt from a lecture. it is nothing short of amazing

    "I will tell you key points about banks.  In case you thought banks lend
    money, they take deposits and lend money.  You are wrong . Banking was
    developed, modern banking was developed, in the United Kingdom in the
    17th century and the legal facts are very clear but not very well
    known.  Banks do not take deposits and banks do not lend money.  That's a
    fact.

    How is that possible.  How is that possible. Well, legally
    they do not take deposits.  They borrow from the public, because your
    money at the bank is not on deposit.  Its not held in custody, it's not a
    bailment.

    What is it legally?  You have lent money to the bank.
    So the expression in banking are designed to mislead what's really
    happening. Who is the owner of this money? It is the banks, you are just
    a general creditor.  Which is very different from the impression given
    when we use the term deposit.

    What about lending surely banks
    lend money?  No they don’t.  No bank has ever lent any money. How is
    that possible?  What does a bank do?

    Banks purchase securities
    and they don’t pay up.  That's what they do.  How is that?  Well if you
    go to the bank and you borrow money you sign a loan contract. Very
    crucial. Your signature creates the money supply.

    Because the
    bank legally will consider the loan contract a promissory note. And that
    is what is considered legally, is a promissory note. Just like the bank
    of England Note, central bank money, paper money, is a promissory note
    from the central bank.   And the bank purchases this contract. That is
    what they do, they purchase the loan contract. 

    Now they owe you
    money.  You say I dont care about the mechanics, give me the money. The
    banker will say we will put it in your account. You will find it in your
    bank account.  Well what is a bank account? It is not a deposit.  Its a
    record of the bank's debt to the public.  It is a record of the bank's
    debt to the new borrower, and they show you the record of how much money
    they owe you. That is it, they don’t pay up.  And this is how the money
    supply is created.

    So lets go in sequence:
    Step one:  You go
    to the bank and you sign the loan contract, say a thousand pounds.  This
    will be recorded in the bank balance sheet as an increase in bank
    assets.  The bank, will then, record its debt to the borrower. But it
    will do some accountant trick.  It should really say this is an accounts
    payable item.  Something that the bank has to pay but it has not yet
    paid. But it wont record as an accounts payable. If you talk to an
    bank's accountant they are horrified “No you cannot use an expression
    like accounts payable in a bank”  And do you know why?  Because they
    recorded it as customer deposit.  They show it on the bank's liability
    side as a customer deposit.  But nobody has deposited it, the customer
    has not deposited for sure.  The customer is borrowing it. The bank has
    not deposited either.  It is added to the money supply, and this is how
    97% of the money supply is created out of nothing on the basis of a
    signature and of course on the credit of the borrower.  That is money
    creation.  So no money is transferred from any where else to the
    borrowers account.
    Economist RICHARD WERNER
  16. It a national ponzi scheme.
  17. Every dollar You have in your pocket, is somebode else debt Money=debt Debt=money So if everybody in the whole world payed their debt, it would be no money. And then on top of that we have high interest rates. But the problem then would be that it would not be any more money. Strange, isnt it? Fuck the system
  18. Nah mate you need to prove to the bank you can repay the loan from wage slips you supply over a year or whatever, then you sign some paper and bingo they create the money out of thin air, that will take you 20+years to repay it's a total scam
  19. This video is 100% WRONG.  The 'Money Multiplier" is a myth.  Banks are not reserve or deposit constrained in their lending.


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Duration: 13m 4s

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